Evergreen Reporter

The National Federation of Independent Business (NFIB) has released a new report detailing the potential impacts of the 20% Small Business Tax Deduction for Washington state. This deduction, if made permanent, could benefit over 672,000 small businesses in the state by preventing a significant tax increase. The report warns of increased taxes for these businesses if the deduction is not continued, potentially resulting in economic challenges both locally and nationally.

A notable point in the report is the discrepancy in tax rates if the deduction expires. While the tax rate for larger corporations in Washington would remain at 21%, small businesses could see theirs rise to 39.6%. The organization argues that making the deduction permanent could equalize tax rates between small and large businesses. Moreover, the state could see substantial economic growth, with projections of creating 30,000 new jobs annually for the next decade and a GDP increase estimated at $1.91 billion per year initially, rising to $3.84 billion annually after 2035.

NFIB Washington State Director Patrick Connor emphasized the role of small businesses in the economy, stating, “Small businesses don’t just create jobs—they create opportunity, innovation, and strong local economies.” Connor expressed concern that letting the deduction expire would impose a "massive tax hike on small businesses," affecting growth, hiring efforts, and endangering numerous businesses.

This tax deduction, originating from the Tax Cuts and Jobs Act of 2017, has reportedly helped many small businesses to grow and remain competitive. The NFIB stresses the urgency for Congress to act quickly to ensure the provision's permanence to safeguard jobs and economic stability.

For more information or to follow up with the NFIB's activities in support of small businesses, individuals are encouraged to visit their website or engage with them on social media platforms.